When selling, advising or brokering certificates and derivatives, special information is required to avoid liability towards investors. Credit institutions sold “guarantee” certificates and similar constructs to bank customers, for example the Lehman Brothers Bank, as a safe investment: numerous liability traps await bank and savings bank advisors. I. Consultant incompetence and conditions trap Certificates […]
When maybe only 100,000 euros are secured and the rest becomes a restructuring profit for the bank…. The Financial Market Authority cannot prevent the insolvency of credit institutions, securities trading houses or insurance companies. For securities trading companies, the maximum compensation obligation is 90% of up to EUR 20,000. In the past, there was […]
Why mediators of dubious investment models cannot hope for residual debt discharge Complicity and aiding and abetting in the unauthorised conduct of banking business, section 32 KWG The Federal Court of Justice (BGH, judgement of 21.04.2005, ref. III ZR 280/03) decided that § 32 of the German Banking Act (KWG) also applies in favour […]
– What are the liability risks for investors, advisors and intermediaries? German investors lose up to more than 40 billion euros annually on capital investments. Time and again, public prosecutors or insolvency administrators are interested in whether the calculation of returns or the practices in balance sheets and accounting have been all too creative […]
A commentary and recommendations for action by attorney Dr. Johannes Fiala. “No, no, dear investor: the money is not gone – it is just that other people have it today”. For intermediaries and advisors, there is not only the risk of losing portfolios and lapse reserves. 15% commission and more: Federal Court of Justice (BGH) forces […]
*by Johannes Fiala, Lawyer (Munich), Mediator (Univ.), MBA Financial Services (Univ.Wales), MM (Univ.), Certified Financial and Investment Advisor (A.F.A.), EC Expert (C.I.F.E.), Lecturer (Univ. of Cooperative Education), Banker (www.fiala.de) “Most transportation taxes, including sales taxes, have no deeper purpose than to bring money to the state.” Federal Fiscal Court (BFH), in: BStBl 1973, p.96 From […]
*by Johannes Fiala, Lawyer (Munich), Mediator (Univ.), MBA Financial Services (Univ.Wales), MM (Univ.), Certified Financial and Investment Advisor (A.F.A.), EC Expert (C.I.F.E.), Lecturer (Univ. of Cooperative Education), Banker (www.fiala.de) “Most transportation taxes, including sales taxes, have no deeper purpose than to bring money to the state.” Federal Fiscal Court (BFH), in: BStBl 1973, p.96 From […]
“Most transportation taxes, including sales taxes, have no deeper purpose than to bring money to the state.” Federal Fiscal Court (BFH), in: BStBl 1973, p.96 From an initiator’s point of view, the involvement of a trustee offers considerable advantages, for example in the case of KG investments. The effort for the “register publicity” of the […]
Why presumption certificates and well-intentioned laws invite crime Over 35 million citizens live in Germany for rent. Since 01.11.2015, they have to submit a certificate from the landlord about moving in and out to the registration office. A state secretary from the Ministry of the Interior commented on the amendment to the law: “The Federal […]
